Sioni Group JV Lands $275M for Manhattan Luxury Development
Affinius Capital and InterVest Capital Partners provided the financing.
Sioni Group, in a joint venture with AB & Sons, has obtained a $275 million financing package for the development of Milano Residences, a 311-unit luxury residential project in Manhattan’s Midtown South neighborhood. Galaxy Capital Partner Henry Bodek arranged the deal. Â
Affinius Capital provided $215 million, while the rest of the sum came from a junior mezzanine loan issued by InterVest Capital Partners. Project financing also includes a senior loan originated by Kennedy Wilson.
The developer also obtained a $47 million construction loan from Valley National Bank in 2023, according to Yardi Matrix information.
In March, the construction surpassed the halfway mark, New York YIMBY reported. Initial plans called for a 384,118-square-foot, 785-foot-tall structure. However, said plans have changed and seven new floors were recently added for a final height of 75 stories.
The new tower
The tower’s unit mix has changed as well. What started off as a 300-unit condo project is now a multifamily rental development that will feature only a few condominiums when complete.
Now Milano Residences is slated to include 284 for-rent apartments with studio, one-, two- and three-bedroom layouts. Out of those, 30 percent will be designated as affordable housing. The remaining 27 units will be for-sale condominiums with one- to three-bedroom floorplans, as well as penthouses.
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The upscale project’s amenities are to comprise an indoor pool, fitness center, spa with saunas, coworking area, children’s playroom and movie theater, all spread across the second and third floors of the development. The future building will also have more than two floors of retail space, the same data provider shows.
Developed after the designs of C3D Architecture, Milano Residences rises at 989 6th Ave., at the intersection of 37th Street and 6th Avenue in the Garment District. The site is less than 1 mile from Empire State Building, Bryant Park, Madison Square Garden and several subway stations.
Multifamily completions in New York City made up 1.6 percent of the total stock as of February, according to a recent Yardi Matrix multifamily report. Asking rents witnessed a 5.6 percent year-over-year growth, significantly above the national 1.2 percent figure.
